BILL NUMBER: AB 2513	CHAPTERED  09/30/00

	CHAPTER   970
	FILED WITH SECRETARY OF STATE   SEPTEMBER 30, 2000
	APPROVED BY GOVERNOR   SEPTEMBER 29, 2000
	PASSED THE ASSEMBLY   AUGUST 25, 2000
	PASSED THE SENATE   AUGUST 24, 2000
	AMENDED IN SENATE   AUGUST 21, 2000
	AMENDED IN SENATE   JULY 6, 2000
	AMENDED IN ASSEMBLY   MAY 10, 2000

INTRODUCED BY   Assembly Member Shelley

                        FEBRUARY 24, 2000

   An act to amend Section 1777.1 of the Labor Code, relating to
public works.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 2513, Shelley.  Prevailing wage requirements:  violations.
   Under existing law, whenever a contractor or subcontractor
performing a public works project is found by the Labor Commissioner
to be either in violation of certain provisions of law relating to
payment of prevailing wages, with intent to defraud, or in willful
violation of those provisions of law, the contractor or subcontractor
or a firm, corporation, partnership, or association in which the
contractor or subcontractor has a substantial interest is ineligible
to bid on or to receive a public works contract for specified periods
of time.
   This bill would delete the requirement that a contractor or
subcontractor have a substantial interest in one of the above-listed
entities in order for the entity to be ineligible to bid or contract,
and instead would render ineligible an entity in which an ineligible
contractor has any interest.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 1777.1 of the Labor Code is amended to read:
   1777.1.  (a) Whenever a contractor or subcontractor performing a
public works project pursuant to this chapter is found by the Labor
Commissioner to be in violation of this chapter with intent to
defraud, except Section 1777.5, the contractor or subcontractor or a
firm, corporation, partnership, or association in which the
contractor or subcontractor has any interest is ineligible for a
period of not less than one year or more than three years to do
either of the following:
   (1) Bid on or be awarded a contract for a public works project.
   (2) Perform work as a subcontractor on a public works project.
   (b) Whenever a contractor or subcontractor performing a public
works project pursuant to this chapter is found by the Labor
Commissioner to be in willful violation of this chapter, except
Section 1777.5, the contractor or subcontractor or a firm,
corporation, partnership, or association in which the contractor or
subcontractor has any interest is ineligible for a period up to three
years for each second and subsequent violation occurring within
three years of a separate and previous willful violation of this
chapter to do either of the following:
   (1) Bid on or be awarded a contract for a public works project.
   (2) Perform work as a subcontractor on a public works project.
   (c) A willful violation occurs when the contractor or
subcontractor knew or reasonably should have known of his or her
obligations under the public works law and deliberately fails or
refuses to comply with its provisions.
   (d) Not less than semiannually, the Labor Commissioner shall
publish and distribute to awarding bodies a list of contractors who
are ineligible to bid on or be awarded a public works contract, or to
perform work as a subcontractor on a public works project pursuant
to this chapter.  The list shall contain the name of the contractor,
the Contractor's State License Board license number of the
contractor, and the effective period of debarment of the contractor.
The commissioner shall also place advertisements in construction
industry publications targeted to the contractors and subcontractors,
chosen by the commissioner, that state the effective period of the
debarment and the reason for debarment.  The advertisements shall
appear one time for each debarment of a contractor in each
publication chosen by the commissioner.  The debarred contractor or
subcontractor shall be liable to the commissioner for the reasonable
cost of the advertisements, not to exceed five thousand dollars
($5,000).  The amount paid to the commissioner for the advertisements
shall be credited against the contractor's or subcontractor's
obligation to pay civil fines or penalties for the same willful
violation of this chapter.
   (e) For purposes of this section, "contractor or subcontractor"
means a firm, corporation, partnership, or association and its
responsible managing officer, as well as any supervisors, managers,
and officers found by the Labor Commissioner to be personally and
substantially responsible for the willful violation of this chapter.

   (f) For the purposes of this section, the term "any interest"
means an interest in the entity bidding or performing work on the
public works project, whether as an owner, partner, officer, manager,
employee, agent, consultant, or representative.  "Any interest"
includes, but is not limited to, all instances where the debarred
contractor or subcontractor receives payments, whether cash or any
other form of compensation, from any entity bidding or performing
work on the public works project, or enters into any contracts or
agreements with the entity bidding or performing work on the public
works project for services performed or to be performed for contracts
that have been or will be assigned or sublet, or for vehicles,
tools, equipment, or supplies that have been or will be sold, rented,
or leased during the period from the initiation of the debarment
proceedings until the end of the term of the debarment period.  "Any
interest" does not include shares held in a publicly traded
corporation if the shares were not received as compensation after the
initiation of debarment from an entity bidding or performing work on
a public works project.
   (g) For the purposes of this section, the term "entity" is defined
as a company, limited liability company, association, partnership,
sole proprietorship, limited liability partnership, corporation,
business trust, or organization.
   (h) The Labor Commissioner shall adopt rules and regulations for
the administration and enforcement of this section.
